A                         PROJECT REPORT                               ON                    HUMAN RESOURCE CLIMATE.      ...
DECLARATIONWe Ms. KAUSAR MANSURI student of MBA sem.2nd ,Year 2011-12 of GIDC RAJJUSHROFF ROFEL INSTITUTE OF MANAGEMENT ST...
CERTIFICATECertified that this comprehensive Project Report Titled” HUMAN RESOURCE CLIMATE “ Isthe bona fide work of Ms.KA...
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PREFACE          “The smallest seed of faith is better than the largest fruit of happiness”                               ...
ACKNOWLEDGEMENT.“As we express our gratitude, we must never forget that the highest appreciation is not toutter words, but...
INDEX                          PARTICULARS                     PAGESR NO.                                                 ...
LIST OF TABLESTABLE                                      TITLE                                      PAGE NO.     NO01     ...
20   Table showing perception of the respondents regarding employee offer     moral support and help to other employees & ...
40   Table showing perception of the respondents regarding employees are     encouraged to experiment with new methods and...
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INTRODUCTION   Aarti has started its operations in the year 1975 in the name of   alchemies labs in a small of way with a ...
AARTI INDUSTRIES LIMITED (AIL) & AARTI DRUGS LIMITED (ADL) are listed onStock Exchanges. AARTI has a Subsidiary AARTI HEAL...
15
CORPORATE INFORMATIONNAME OF THE COMPANY :                   AARTI INDUSTRIES LIMITED.TYPE OF COMPANY:                    ...
CITI BANK N.AREGISTERED OFFICE:                              Plot no. 801,801/23                              GIDC ESTATE,...
AUDITORS:                                M/S Parikh Joshi & Kothare                                         49/2341,M.H.B....
Mr. Chandrakant Gogri – ChairmanA Chemical Engineer from UDCT, is the founder of Aarti groupstarting from a small unit to ...
Mr. Manoj Chheda - DirectorGraduate in Commerce from Mumbai University. He has Over 20years of experience in local and Int...
MANAGEMENT OF AARTI INDUSTRIES LTD.                           MANAGEMENT OF AARTI INDUSTRIES LTD.     TOP LEVEL           ...
Mission & Vision statement.Vision   To retain leadership in domestic market.   To attain significant presence in global ...
GOAL.AARTI group is strategically placed to exploit growth opportunities in the chemical industry.In the view of its techn...
 Multi product and multi manufacturing locations, ideally placed to serve global   customers Strong & cost effective log...
THREATS:- The company‟s threats perception is the shifting of some its end usage products to   China. Accordingly the com...
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PRODUCTION DEPARTMENTObjectives:-    To ensure economic utilization of available floor space.    To ensure efficient con...
 Para Nitro Chloral Benzene (PNCB) Ortho Nitro Chloral Benzene (ONCB) 2:4 Dinitro Chlora Benzene (DNCB) Para Dichlora ...
There are the above chemical products which are exported by the AIL to the different countriesthese countries are as follo...
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FINANCE DEPARTMENTFinance plays a major role in determining the position of a company. A person not trained infinance mana...
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MARKETING DEPARTMENTWhat is marketing?“It is social and managerial process by which individual and group obtain what they ...
To have maximum sales of their product with maximum customers       Enhancing economic growth.       Strengthening social ...
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QUALITY CONTROL & QUALITYASSURANCE DEPARTMENTIt is the sum of the attributes that describes that product. According to the...
7.    Periodically maintain of safety inspection.Safety equipment:1)    Medical Oxygen2)    Canister Mask3)    Ayer Supply...
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RESEARCH &DEVELOPMENT DEPARTMENTAARTI has expertise in developing new products and processes that have world-class quality...
Aarti has fully equipped laboratory with high-tech advanced instruments & highly qualifiedtechnical personnel as its R &D ...
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HUMAN RESOURCE DEPARTMENT.Human resource department is that of the management which is related with management ofplanning,...
 Casual labor arrangement.      Building maintenance and office maintenance.      Public relation activities.      Sal...
Recruitment Process                   Chemist & engineers                      Newspaper                         Written T...
Selection process                    Application Forms                    Interview                    Physical Examinatio...
        House rent allowance of Rs.15000/- per month        Bonus/ex-gratis Rs 85000/- per annum        Compensation of...
Basic + Dearness allowance + other financial pays like cash canteen subsidies, „washingallowance , shift allowance , contr...
4) Employees provident funds and miscellaneous act, 19425) Payment of Bonus act,19656) Payment wages act, 19367) Payment o...
According to policy marketing personal is transfer every four years, so they can come back tothe native state. Frequent tr...
The scheme is such that Rs. 2500/- to be given to all the employees on behalf of the society andAIL on expiry of any of th...
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INTRODUCTION OF HUMAN RESOURCE CLIMATE.The history and origin of Human Resource Development is not very old. The term came...
context? Is it different at the macro and micro level? HRD can be applied both for the nationallevel and organizational le...
resources. Investment in human beings is another underlying concept of the human resourcesystem. The organization accepts ...
It appears that definitions of HRD may vary from one country to another, and the       national differences are a crucial ...
interventions that are intended to change organizational behavior; strategic, long term, culturaland organizational change...
 Organization Complexity: With the emergence of increased mechanization and  automation, manufacturing of multiple produc...
system‟s practices and procedures however, if the climate is one which reward and supportindividual differences, people in...
Rao and Abrsham,(1986) HRD climate is an integral part of organizational climate. It can bedefined as perceptions the empl...
 Trust;  Authenticity or correlation between words and action;  Proaction or encouraging some degree of initiative and ...
employees, to help the employees at lower level they need to updated properly and they need toshare their expertise and ex...
Team spirit: - There must be feeling of belongingness among the employees, and alsowillingness to work as a team.ELEMENTS ...
FACTORS AFFECTING HRD CLIMATEThe following factors may be considered as contributing to HRD Climate:1.Top management style...
clear, people will not know what the work process is, who responsible for what, whom to gofor help and decision, and who c...
position structure, low individual autonomy, low reward orientation, low warmth and support and so on, or it may be opposi...
Experimentation Human resource development climate in an Organization is reflected by itsrole, clarity, openness, trust, t...
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RESEARCH METHOLODYTITLE“A study on Human Resource Climate”of 66 top and middle level employees at AartiIndustries Ltd, Vap...
SECONDARY OBJECTIVE:- To identify nature of work of employees in Aarti Industries Ltd. To study existing working environme...
RESEARCH DESIGNThe research design for this study is Descriptive and Explorative nature.DESCRIPTIVE RESEARCHThe main goal ...
Dependent variable includes nature of work, working environment, welfare measure,performance management system, training, ...
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REVIEW OF LITERATURELyon & Lvancevich (1974) in their study of a Hospital have found that different climatedimensions infl...
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  1. 1. A PROJECT REPORT ON HUMAN RESOURCE CLIMATE. OF AARTI INDUSTRIES LTD. AS PARTIAL FULFILLMENT OF MBA. YEAR 2012INTERNAL GUIDE. EXTERNAL GUIDE.MR. MAULESH RATHOD. Mr.KIRIT SHASHTRI. SUBMITTED BY. KAUSAR MANSURI. MBA 2nd SEM. ROFEL INSTITUTE OF MANAGEMENT STUDIES. [AFFILIATED TO GTU (GUJARAT TECHNOLOGICAL UNIVERSITY)] 1
  2. 2. DECLARATIONWe Ms. KAUSAR MANSURI student of MBA sem.2nd ,Year 2011-12 of GIDC RAJJUSHROFF ROFEL INSTITUTE OF MANAGEMENT STUDIES ,VAPI, affiliated to GujaratTechnological University, Ahmadabad hereby declare that the report for comprehensive Projectentitled “HUMAN RESOURCE CLIMATE” is a result of our work and sincere efforts.I also declare that all the information collected from various secondary sources has been dulyacknowledged in this Project report.Student signature_____________ 2
  3. 3. CERTIFICATECertified that this comprehensive Project Report Titled” HUMAN RESOURCE CLIMATE “ Isthe bona fide work of Ms.KAUSAR MANSURI( 117160592049) who carried out the researchunder my supervision. I also certify further, that to the best of my knowledge the work reportedhere in does not from part of any other project Report or dissertation on the basis of which adegree or award was conferred on an earlier occasion on this or any other candidate.Place:Date : (LECT. MAULESH RATHOD) Director (Dr. PANKAJ PATEL) 3
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  6. 6. PREFACE “The smallest seed of faith is better than the largest fruit of happiness” Henry David.Human Resource Development is a frame work for the improvement of human capital in anorganization. Human resource development is a combination of Training and Education thatensures the continual improvement and growth of both the individual and the organization.Human Resource Development is not defined object, but a series of organized processes, “witha specific learning objective.”Human Resource Development is the structure that allows for individual development,potentially satisfying the organization‟s goals. The development of the individual will benefitboth the individual and the organization.The term climate is used to designate the quality of the internal environment which conditionsin turn the quality of cooperation, the development of the individual, the extent of member‟sdedication or commitment to organizational purpose becomes translated into results. Climate isthe atmosphere in which individuals help, judge, and reward, constrain and find out about eachothers.HRD climate contributes to the organizations overall health and self-renewing capabilitieswhich in turn increase the enabling capabilities of individual, dyads, team and the entireorganization. It is the human environment within organization‟s employees performs their job.It may refer to the environment within department, a major company unit such as a branch,plant or an entire organization. 6
  7. 7. ACKNOWLEDGEMENT.“As we express our gratitude, we must never forget that the highest appreciation is not toutter words, but to live by them.” -John KennedyCompletion of any task small or big isn‟t feasible without the support and wishes of manypeople, who are of important in one‟s life. Throughout the completion of this study, there aremany people who have guided, helped, supported and have also encouraged to give my best tothe study. I would like to express my in depth gratitude towards them.First I would like to express my salutation to God, My parents, My Brother & My Sisters forgiving me the strength, confidence and moral boost to successful complete my entire project.And also I would like to acknowledge the continuous encouragement and help extended to meby Mr. Maulesh Rathod, for the guidance & support in preparing the project. I am very much thankful to entire team of AARTI INDUS. LTD. Especially I like to thanksMr. Kirit Shashtri (H.R.Manager), I am equally grateful to all the Staff members of AARTIINDUS LTD., they have also provided admirable support for completion of this trainingprogrammed.I express my deep sense of gratitude to Dr. Pankaj Patel-Director GRIMS, Vapi for hisadmirable support & sheer commitment in boosting my morals. THANKS 7
  8. 8. INDEX PARTICULARS PAGESR NO. NO. PREFACE 6. 1. ACKNOWLEDGEMENT 7. 2. LIST OF TABLES 9. 3. INTRODUCTION OF COMPANY 12. 4. CORPORATE INFORMATION 15. 5. PRODUCTION DEPARTMENT 26. 6. FINANCE DEPARTMENT 30. 7. MARKETING DEPARTMENT 32. 8. QUALITY ASSURANCE & QUALITY CONTROL DEPARTMENT 35. 9. RESEARCH & DEVELOPMENT DEPARTMENT 38. 10. HUMAN RESOURCE DEPARTMENT 40. 11. INTRODUCTION OF RESEARCH TOPIC 57. 12. RESEARCH METHODOLOGY 67. 13. REVIEW OF LITERATURE 72. 14. DATA ANALYSIS & INTERPRETATION 76. 15. FINDINGS,CONCLUSION & SUGGESTION 122. 16. ANNEXURE 125. 17. APPENDIX 131. 18. 8
  9. 9. LIST OF TABLESTABLE TITLE PAGE NO. NO01 Table Showing sex-wise distribution of the respondents. 7702 Table Showing age wised distribution of the respondents. 7803 Table Showing educational wised distribution of the respondents. 7904 Table Showing Department wise distribution of the respondents. 8005 Table Showing Department wised distribution of employees. 8106 Table Showing of the respondents according to working experience in Aarti industries Ltd. 8207 Table Showing perception of respondents regarding top management ways to make sure that employees enjoy their work. 8308 Table Showing perceptions of the respondents regarding employees are invited for participation in decision making by top management. 8409 Table Showing the perception of the respondents regarding employees are very flexible and discuss their personal problems with their 85 supervisor.10 Table Showing the perception of the respondents regarding there is tactfulness, smartness and even a little manipulation in employees to 86 get things done.11 Table showing the perception of the respondents regarding employees take points to find out their supervising officer and colleagues. 8712 Table showing the opinion of the respondents regarding team spirit is of high order in the organization. 8813 Table showing perception of the respondents about Manager’s belief that employee’s behavior can be changed and can be developed at any 89 stage of their life.14 Table showing perception of the respondents regarding the psychological climate helps employee in developing themselves by 90 acquiring new knowledge & skills.15 Table showing perception of the respondents regarding Supervisor treats their subordinates with understanding and help them when they 91 make any mistake.16 Table showing perception of the respondents regarding the mission of organization makes me feel that I am Important. 9217 Table showing perceptions of the respondents regarding employees in this organization are helpful to each to other. 9318 Table showing perception of the respondents regarding management is flexible and understand the importance of balancing professional life & personal life. 9419 Table showing perceptions of the respondents regarding employees in this organization trust each other. 95 9
  10. 10. 20 Table showing perception of the respondents regarding employee offer moral support and help to other employees & colleagues in crisis 9621 Table showing perception of the respondents regarding management use to consider both positive and negative aspects before taking action. 9722 Table showing perception of the respondents regarding leaders follow- up on employees suggestion. 9823 Table showing perception of the respondents regarding the management ensures employee’s welfare so that the employees can 99 save their mental energy for work.24 Table showing perception of the respondents regarding the mechanism which are there to reward any good work made by employees. 10025 Table showing perception of the respondents regarding performance appraisal reports is filled- in based on objective assessment and not on 101 favoritism.26 Table showing perception of the respondents regarding promotion is based on the suitability of the promote rather than on favoritism. 10227 Table showing perception of the respondents regarding performance appraisal helps them in identifying the strength and weaknesses. 10328 Table showing perception of the respondents regarding senior officers take active interest in their juniors and help them to learn their job. 10429 Table showing perception of the respondents regarding delegation of authority to encourage junior to develop handling higher responsibilities 10530 Table showing perception of the respondents regarding this company makes continuous improvement in all areas. 10631 Table showing perception of the respondents regarding job rotation facilitates development of employee in organization. 10732 Table showing perception of the respondents regarding when employees are sponsored for training, they take it seriously and try to 108 learn from the programs they attend.33 Table showing perception of the respondents regarding employees returning from training programmes are given opportunities to try what 109 they have learnt.34 Table showing perception of the respondents regarding development of subordinates is seen as an important part of their job by the managers. 11035 Table showing perception of the respondents regarding the top management is willing to invest a considerable part of their time and 111 other resource to ensure the development of employees.36 Table showing perception of the respondents regarding the organization future plans are made known to the managerial staff & help them 112 develop their junior and prepare them for future.37 Table showing perception of the respondents regarding career opportunities are pointed out to junior by senior officer in the 113 organization.38 Table showing perception of the respondents regarding employees make attempts to change behavior on the basis feedback received. 11439 Table showing perception of the respondents regarding the employee in the organization does not have any fixed mental impression about each 115 other. 10
  11. 11. 40 Table showing perception of the respondents regarding employees are encouraged to experiment with new methods and try out creative ideas. 11641 Table showing perceptions of the respondents regarding employees are not afraid to express or discuss their feelings to the supervisor. 11742 Table showing perception of the respondents regarding employees are encouraged to take initiative and do things on their own without to wait 118 to interactions from supervisor.43 Table showing perception of the respondents regarding telling polite lie is preferable than telling the unpleasant truth. 11944 Table showing perception of the respondents regarding you have free interaction amongst other employees, each respecting others feelings, 120 competence and sense of judgment45 Table showing perception of the respondents regarding people discus problems openly and try to solve it rather than keep accusing each other 121 behind the back. 11
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  13. 13. INTRODUCTION Aarti has started its operations in the year 1975 in the name of alchemies labs in a small of way with a single product namely Dimentyl sulphate. Today Aarti is one of the leading suppliers to global manufacturers of Dyes, Pigments,Agrochemicals, Pharmaceuticals & rubber chemicals. Aarti has acquired world-class expertisein the development & manufacture of these chemicals. Aarti is amongst the largest producersof Benzene based basic and intermediate chemicals in India. It has corporate office in Mumbai & representatives in U.S.A & Europe. Aarti has 16 manufacturing units spread across Gujarat & Maharashtra and a strong Research & Development with sophisticated instruments & pool of scientists. Aarti has strong Research & Development center with sophisticated instruments & pool of scientists. Aarti has customers spread across the globe in 60 countries with major presence in USA, Europe, Japan & India. AARTI has attained a group turnover of US $ 515 million in the year April 2009 – March 2010. AARTI group is strategically placed to exploit growth opportunities in the Chemical Industry. In view of its technical expertise and broad base satisfied clientele in India and abroad, AARTI is looking for global partners and strategic alliances in areas of mutual interest viz. Development of International markets for AARTIs products. Toll manufacturing. Transfer of Technology / Technical know-how. 13
  14. 14. AARTI INDUSTRIES LIMITED (AIL) & AARTI DRUGS LIMITED (ADL) are listed onStock Exchanges. AARTI has a Subsidiary AARTI HEALTHCARE LIMITED (AHCL),which is engaged in manufacturing of Active pharma ingredients ranging from Ace Inhibitors,Bronchodilators to Steroids. HISTORY OF AARTI INDUSTRIES LTD.Aarti industries ltd (AIL) was established in 1984 as a small venture by a group of technocrats.It is a public limited company. The promoter was Mr. Chandrakant over the last more than 20years it has evolved to it presents status crossing several milestones. In the initial stage thecompany was producing DMS products. In 1992, they expanded their company and startedproducing pharmacy products. During this evolution period the AARTI Industries LTD had setup a member of expansion and diversification project funded by a public issue in 1992,institutional assistance and from when the company had started in 1984 and now the period of2006 it had undergone the vast changes many new machines had been recently built,innovation and expansion is done to create the demand and maintain the quality. So we can seethat this company is at stage where it can find many company lagging behind. 14
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  16. 16. CORPORATE INFORMATIONNAME OF THE COMPANY : AARTI INDUSTRIES LIMITED.TYPE OF COMPANY: Public LimitedESTABLISHEDYEAR : 1984SIZE OF COMPANY : Large ScalePLANTS: 1.Plot no.801,801/23 802,803/1-2-3, GIDC, Phase 3,VAPI-396195 2.Plot no. 902, GIDC ESTATE Phase 2, VAPI-396195 DIST: VALSAD, GUJARAT 3. Plot No. 752-753-754 SARIGAM, TA: UMARGOAN DIST: VALSAD, GUJARAT 4. Plot No. 758/1,758/2, GIDC ESTATE JHAGADIA DI: BHARUCH,GUJARAT 5. Plot No K-18,MIDC TARAPUR, DI: THANE,MAHARASHTRA 6. Plot no. E-50, MIDC TARAPUR DI: THANE 16
  17. 17. CITI BANK N.AREGISTERED OFFICE: Plot no. 801,801/23 GIDC ESTATE, PHASE-3 VAPI-396195,VALSAD. Dog Kosher,CORPORATE OFFICE: 2nd floor, L.B.S Marg, Mulund-Goregoan Link Road, Mulund (w), Mumbai-400 080 Chandrakant. V. Gogri (chairman)BOARD OF DIRECTORS: Rajendra.V.Gogri (vice chairman & Managing Director). Shantilal .T. Shah (vice chairman)INDEPENDENT DIRECTORS: Ramdas .M.Gandhi Laxmichand .k. Jain Vijay .H. Patil Haresh .k.Chheda Parimal .H. DesaiWHOLE TIME DIRECTORS: Manoj .M. Chheda Rashesh Chheda Hetal Gogri Gala Kirit .R.Mehta Mona PatelCOMPANY SECRETARY : 17
  18. 18. AUDITORS: M/S Parikh Joshi & Kothare 49/2341,M.H.B.COLONY Gandhi Nagar, Bandra (EAST) Mumbai-400051REGISTRAR & TRANSFER AGENT Sharepro Services (INDIA) PVT.LTD. Satam Estate, 3rd floor, Above bank of Baroda, Cardinal Gracious road, Chakala, Andheri (E), Mumbai-400099 Phone no: 677300351/352/353 I. Registered Plotno.801,801/23 802,803/1-2-3,GIDC,office: Phase3,VAPI-396195 DIST: VALSAD, GUJARAT II. Corporate office: Udyog Kshetra, 2nd floor, L.B.S Marg, Mulund-Goregoan Link Road, Mulund (w), Mumbai-400 080BANKERS: Bank of Baroda Union Bank of India State Bank of India ANB Amora Bank Standard Chartered Bank HDFC Bank Ltd. Export- Import Bank of India IDBI Bank N.A. UTI/AXIS Bank Ltd. 18
  19. 19. Mr. Chandrakant Gogri – ChairmanA Chemical Engineer from UDCT, is the founder of Aarti groupstarting from a small unit to path breaking enterprise. A pioneeringentrepreneur, has varied experience and expertise covering Projects,Operations, Process Development and Marketing.Mr. Rajendra Gogri – Vice Chairman &Managing DirectorA Brilliant Chemical Engineer from UDCT, Mumbai, has alsocompleted his Masters in Chemical Engineering from IOWAUniversity of USA. He has many years of expertise in the areas of Operations, Marketing &Financial Management.Mr. Shantilal Shah – Vice ChairmanHe is the founder, director of the Aarti Group. Heads the banking andfinancial operations of Aarti Group.Mr. Parimal Desai – DirectorChemical Engineering graduate from UDCT, Mumbai, is a ChemicalEngineer to the core. Our founder director, he has been in-charge ofTechnical and Research & Development. He has more than 30 years ofexperience in Chemical and Pharma field. 19
  20. 20. Mr. Manoj Chheda - DirectorGraduate in Commerce from Mumbai University. He has Over 20years of experience in local and International Marketing. Currentlytakes care of International Marketing.Mr. Rashesh Gogri - DirectorA graduate in Production Engineering from Mumbai. He is head ofCommercial and Marketing Functions with the special focus onPharma products.Ms. Hetal Gala Gogri – DirectorAn Engineer in Electronics and has done MDP from IIM –Ahmedabad. She has varied experience in Operations, Purchase &Marketing. Currently she heads purchase and Supply ChainManagement.Mr. Kirit Mehta - DirectorA graduate in commerce. Has more than 30 years of experience inChemical Industry. 20
  21. 21. MANAGEMENT OF AARTI INDUSTRIES LTD. MANAGEMENT OF AARTI INDUSTRIES LTD. TOP LEVEL MIDDLE LEVEL BOTTOM LEVEL ASSISTANTGM ASS DEP SENI MAN OPERATORS T UTY OR AGER GM GM MAN TECHNICIANS GER SUPERVISORS HELPERS SENIOR ASST. SENIOR JUNIOR SENIOR SENIOR JUNIOR DEP. DEP. ENGINEER ENGINEER ENGINE EXECUTI EXECUTIVE MGR MGR ER VE . OFFICE R 21
  22. 22. Mission & Vision statement.Vision  To retain leadership in domestic market.  To attain significant presence in global market.  To become supplier of choice to leading customers.  To be always committed to the employees, shareholders and the society at large.Mission  To constantly strive to set up and maintain global size plant facilities.  To become customer-driven company by providing customized solutions and service to meet changing customer requirements.  To maintain consistent quality and timely delivery at competitive prices.  To use best cost effective manufacturing methods supported by proven, eco-friendly and safe technologies.  Commitment to growth by Research & new product development & progressive increase in Exports.  Continuous focus on people to encourage and nurture winning organizational culture.  To meet the challenges of competition by dynamic management drive.  To set up facilities with USFDA and other overseas approvals. 22
  23. 23. GOAL.AARTI group is strategically placed to exploit growth opportunities in the chemical industry.In the view of its technical and broad base satisfied clientele in India and abroad. AARTI islooking for global partners and strategic alliances in areas of mutual interest viz.  Development of international markets for AARTI‟S products.  Toll manufacturing.  Transfer of technology/ technical know-how.SWOT ANALYSIS. Strengths  Promoters first generation technocrats with proven track record  Global size plants & most cost efficient manufacturing process  World class Research & Development unit with sophisticated instruments. Recognized by dept of DSIR.  Ranked amongst the top 5 global manufacturers for our key products  Highly integrated plants / processes.  Diversified customer base with over 150 export customers and 500 domestic customers 23
  24. 24.  Multi product and multi manufacturing locations, ideally placed to serve global customers Strong & cost effective logistic system. ISO 9002 certified and GMP approved. It had strong technical base with the core whole time director being technocrats with sound entrepreneur skills. The company being a multi location, multi product entity has manufacturing abilities for a large number of products which enables them to change of product mix as per market demands. In house research and development centers recognized by the department of scientific and industrial research continuous research for new products process improvements, energy consumption reduction. The company has a large customer both local and international. The company has strived to serve them with loyalty since inception. It is the support of these customers as well as that its supplier that has enabled the company to sustain growth. The company has always given priority to environment, health and safety. It had technologically upgraded efficient treatment facilities at all its units.WEAKNESS Housekeeping is not up to the mark. Centralized decision making which many a times hinders the functioning of differentdepartments.OPPURTUNTIES The company is stream lining its new units at Vapi and Tarapur for custom synthesis and USDFA approved pharmaceutical manufacturing. The company is also working out marketing tie-ups with multinational for its existing and new range product. The company has a large customer base comprising multinational and global majors. This fact coupled with the in house, competent R&D team gives opportunities to increase volume in existing products and to introduce new products. 24
  25. 25. THREATS:- The company‟s threats perception is the shifting of some its end usage products to China. Accordingly the company is making continuous efforts to increase its presence in China. The company‟s ability to change its product mix quickly, its vast range of products numbering about 75% and its foray into specialty chemical and pharmaceuticals also makes the company confident of countering this threat effectively. 25
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  27. 27. PRODUCTION DEPARTMENTObjectives:-  To ensure economic utilization of available floor space.  To ensure efficient control over the various processes of production  To minimize cost of production  To maximize convenience and safety of the workers  To maximize handling and transportation of material.Raw Material:-The company manufacture is products from the basic raw material- benzene and sulphric. Theother major raw material is chlorine, nitric acid, ammonia, caustic soda and methanol. All theseraw material are available freely in sufficient quantity in the local and international markets.The major suppliers of this raw material are: Reliance industries Ltd Bharat petroleum corporation Ltd. National organic Chemical Industries Ltd. Grasim Industries Deepak Nitrate Ltd Transport Ltd Dubai Helm Chemicals Germany Universal Chemical Bahrain.Product of the AIL:- 27
  28. 28.  Para Nitro Chloral Benzene (PNCB) Ortho Nitro Chloral Benzene (ONCB) 2:4 Dinitro Chlora Benzene (DNCB) Para Dichlora Benzene (PDCB) Ortho Dichlora Benzene (ODCB) Nitro Benzene Alkylated Anilines & Toluidness Chlora Phenols Fluoro Compounds Agrochemicals Other Major Products Bulk Drug Intermediates/specialty Chemicals Bulk Pharmaceuticals Bulk Drugs under R& D Dyes 28
  29. 29. There are the above chemical products which are exported by the AIL to the different countriesthese countries are as follows:1. United State Of America2. Germany3. Italy4. Belgium5. Japan6. United kingdom7. Spain8. Switzerland9. KoreaProduct Uses Manufacturing of fertilizer, heavy chemical, coal , tar product, dyes, plastic, paints andpigment. Explosive , textile, inorganic fertilizer like super phosphate , sulphates, etc. In metal processing use for pickling of steel, in purification of petroleum product Pharmaceuticals, making of alcohols, detergent, insecticides and herbicides. In food industry in manufacturing of starch syrups and other products. In transfer of lead accumulators or batteries are used.Raw water:This utility is used mainly for the purpose of being made into steam. This largest supplier ofthis is the Gujarat Board. 29
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  31. 31. FINANCE DEPARTMENTFinance plays a major role in determining the position of a company. A person not trained infinance management of a company has face N numbers of problems which may affect the dayto day functioning of his company. A person not knowledge of finance may not be able to theexact suitable return on his investment, account and finance walk parallel but as compare toaccount finance is a waste subjectFinancial Functions:- Find the cheapest source of finance Effective utilization of money „Capital is raised through issue of shares, debentures, interoperate deposits, financial,institutions, commercial papers, etc. Negotiations with suppliers.Responsibility of Finance Manager:1) He keeps all the data related to finance and sees that the funds organization is utilized inthe most efficient manner.2) He is the most important person in the shaping the future of the company and has a vitalrole in decisions of the allocation of capital.3) Now a day‟s finance manager solves important management problem and his role isbecoming pervasive and significant. 31
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  33. 33. MARKETING DEPARTMENTWhat is marketing?“It is social and managerial process by which individual and group obtain what they need andwant through creating, offering and exchanging products of value each other”.The same in the case of AILS. The AIL tries its best to satisfy their customers by providingwith the best quality products. AIL considers quality of its products as the company‟s strength.The AIL by giving the proper amount of pricing of its products is able to cater a good amountof customers for the company.1. 50% of the manufacturing of AIL‟s products is exported to the foreign countries.2. 30% of the AIL‟s products is used by the sister concern of the AIL.3. 20% of the manufacturing of AIL is being sent to the Indian market.The competitor of Aarti Industries Ltd.  Alankar Industries  Anami Organics  Apurva Chemical  Chirag Organics Pvt Ltd.  Kamala Intermediaries  Nascent Chemical Ind. Ltd.  Micro Fine.  Shanti Intermediaries Pvt. Ltd.  Vapi Acid & chemicals  Vapi organic Chemical Pvt. Ltd  Panoli Intermediate  Deepak Fertilizer Ltd.  Industrial Solvent and chemical Ltd.Marketing Objectives of AIL To make awareness of their product To become the leader of the manufacturing products To earn profit 33
  34. 34. To have maximum sales of their product with maximum customers Enhancing economic growth. Strengthening social responsibility Intensifying environmental commitment Ensuring a better tomorrowQuality:-Quality is one of the important and basic aspects of marketing. Being a chemical company,consumers may not be directly using AIL‟s products and it may be difficult to see how thechemicals they produce enrich the lives of peopleDesign and feature:-As the product is chemical the design and the features is not possible. The e-products in theAIL are either in the powdered form or in the liquid form. 34
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  36. 36. QUALITY CONTROL & QUALITYASSURANCE DEPARTMENTIt is the sum of the attributes that describes that product. According to the Aarti industry, theobjectives of quality are given below.Objectives of QualityAarti industry is expert in producing a product with a world class quality. Its objectives are asfollows  To satisfy the consumer  To reduce the cost  To improve the income  To increase the productivity.Aarti has expertise in developing new products & processes that have world class quality. Aartiis doing research in various areas with special emphasis on pharmaceutical intermediates ,Agro intermediate , pharmaceuticals, Agrochemicals & specialty chemicals.Quality management systems:- Aarti Industries Ltd is an ISO 9001-2000 Aarti‟s pharmaceutical plants are GMP (good manufacturing practices) approved and some of the plants have got ISO 9002 Certification.Quality AssuranceThe AIL is a company which is an able to provide a mass goods of uniform quality. AIL alsofollows the quality. AIL also follows the quality policy according to which it had obtained ISO-9001, 2000 version certificate (obtained from TUV)Objectives of the safety Department:1. Providing training to the workers for running complicated machines.2. Apply many rules and regulation as per the Govt requirements.3. Safety department declare some information safety policy.4. Purchase of safety equipment5. To make awareness6. Maintenance of safety equipment 36
  37. 37. 7. Periodically maintain of safety inspection.Safety equipment:1) Medical Oxygen2) Canister Mask3) Ayer Supply (organic)4) Canister mask (in organic)5) Dust mask6) Helmet7) Eye plugs8) Eye mask9) Face seal10) Safety goggles11) P.V.C suit12) Hand gloves13) Apron14) Welding shoes15) Safety shoes16) Safety belt 37
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  39. 39. RESEARCH &DEVELOPMENT DEPARTMENTAARTI has expertise in developing new products and processes that have world-class quality.AARTI is doing Research in various areas with special emphasis on PharmaceuticalIntermediates, Agro Intermediates, Pharmaceuticals, Agrochemicals and SpecialtyChemicalsAarti has Research & Development facility which is approved by DSIR. Aarti has dedicatedpool of engineers & scientists who continuously work on new products processes &innovations.AARTI has fully equipped laboratory with high-tech advanced instruments and highlyqualified technical personnel at its R & D centers. Its advanced Analytical Instrumentsinclude:Gas Chromatograph & HPLC Digital Polari meterAuto Titrator Digital Melting Point InstrumentUV Visible Spectrophotometer FTIR SpectrophotometerAARTI at its Pilot Plant facility has R & D Process Equipments like:Glass Reaction Equipment Glass Lined ReactorsHigh Pressure Autoclave SS 316 ReactorsDistillation Equipment CentrifugesSparkler Filter Air Handling SystemsAARTIs pharmaceutical plants are GMP approved and some of the plants have got ISO9002 Certification. 39
  40. 40. Aarti has fully equipped laboratory with high-tech advanced instruments & highly qualifiedtechnical personnel as its R &D centers.Its advanced analytical instrument includes:  Gas chromatograph & HPLC  Auto Titrator  Uv visible spectrophotometer  4Digital polarimeter  FTIR spectrophotometer  Glass Reaction equipment  High pressure Auticlave  Distillation equipment  Sparkler filter  Glass lined reactors  Centrifuges 40
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  42. 42. HUMAN RESOURCE DEPARTMENT.Human resource department is that of the management which is related with management ofplanning, organizing, directing, and controlling of the procurement, development,compensation, integration, maintenance and separation of human resources to the end thatindividual, organization and sociality objectives are accomplished, its objective is themaintenance of those relationship on the basis of which organization can get maximumpersonal contribution from employees.The human resource is important to any labor intensive or capital intensive industries. So theyshould place an important position to an industry. The Aarti industry Limited regularundertakes the training activities and HR initiatives. The company has also continued itsscheme for assistance to employees with a view to ensure that their basic housing needs arefulfilled. The company has been continuously focusing. On people and processes those toencourage and realize their full potential through continuous on job learning and through otherHRD initiatives coordinal and harmonious relation with employees continued to prevailthrough the year under review.FUNCTIONS OF HUMAN RESOURCE DEPATMENTThe following are main functions of human resource manager:  Application and control of company rules and organization policy.  Recruitment of man power intended by HOD and approved by management and top head.  Employees and trainees induction programmed arrangement.  Development of trainees by training and approvals.  Transport arrangement for required by employees, quests & customers.  Booking and reservation as required by employees/quests.  Safety of company material and employees.  Maintenance of first aid material.  Canteen administration.  Assistance of meeting and conference.  Company occasions arrangement like annual day, picnic.  Labor welfare activities as decided by management  Arrangement of uniform, shoes, seasonal wear, safety equipment.  Housekeeping of company premises. 42
  43. 43.  Casual labor arrangement.  Building maintenance and office maintenance.  Public relation activities.  Salary wages and perk administration works and record keeping.  Telecom related activities.  Appraisal assistant of employees for increments, training, promotions.  Factory act related activities.  Stationary planning and arrangement. MAJOR FUNCTIONS OF HUMAN RESOURCE DEPARTMENT.  Recruitment  Selection  Remuneration  Promotion and transfer  Leave structureRecruitmentMan power recruitment is one of the most important and difficult part of the organization. Ifany mistake is done in the recruitment process than it will be directly affects the result of theorganization. If any mistake is done in the recruitment process than it will be directly affectsthe result of the organization. Aarti is producing some of hazardous chemical as for them manpower recruitment process is through job.Recruitment is the generating of the application of specific position through three commonresources i.e. advertisement, stage employees exchange agencies or a private employment.Source of recruitment1) Internal sources:-a) Retired or retrenched employees who want to return back to company may be rehired.b) Dependents and relative of deceased or disabled employees.2) External sources:-a) Advertisementb) Educational institutionc) Labor contractorsd) Recruitment agenciese) 43
  44. 44. Recruitment Process Chemist & engineers Newspaper Written Test Application Sort Test Receiving application Interview Sorting out Application Offer letter Interview Joining the Organization Offer letter Appointment Appointment Letter Letter Joining the organization Finalize II InterviewSelectionSelection is a process of choosing the most suitable persons out of all the application. It is aprocess of matching the qualification with that of job requirements. It is a process of weedingout of the unsuitable candidates and finally identifying the most suitable candidates. The laststep of recruitment involves identifying the sources of manpower and simulating them to applyfor jobs whereas selection is process of selection the best out of the available alternatives. 44
  45. 45. Selection process Application Forms Interview Physical Examination Reference Final Approval EmploymentRemunerationThe remuneration that the AARTI INDUSTRIES LTD. provides to each of the employees is asfollows1) Salary:-The board of director is to be provided with the salary of Rs. 85,000/- per month with power tomake an annual increment area under discussion to a maximum amount of Rs. 1, 50,000/- permonth in respect of salary a privilege up to 100% of salary.2) Commission:-In accumulation to the salary, the whole time Directors of AARTI INDUSTRIES LTD shallalso be entitled to be paid share in comprehensive commission calculated at the rate of 1% ofnet profit of company computed under section 349 of the companies act, 1956 payable to allcompany share of such commission shall be payable after the annual accounts are adopted bythe shareholders.3) Perquisites:-Apart from the salary and commission regularly paid, the whole time Directors shall bepermitted with allowances: 45
  46. 46.  House rent allowance of Rs.15000/- per month Bonus/ex-gratis Rs 85000/- per annum Compensation of Medical Expenses and/or Medical Insurance premiums for self andfamily members as company‟s policy Personal Accident Insurance as per company‟s policy.4) The salary payments:-Salary is usually paid in the first week of every month. Salary officer prepares covers with thename and personal code no., of employees and the pay slip along with cash or cheque as perguide.  Mode of payments in cash or Bank TransferStaff -- cash option or bank transferOfficer – usually bank transfer  The structure of the wages and the salariesThe human resource department also deals with wages and salary system. For the AIL thehappiness and contentment of the employees‟ is the main concern, which is reflected by thehealth wage and salary structure design in the company. The AIL pursues the minimum wagerate policy that fixed by the government.  The salary Diminution :-The time office keeps the documentation of staff employees reporting at duty i.e. the time ofentering and leaving. If employees report late on job, in that case the company cuts the salaryof that particular employees If late by 16 min to 35 min -- pay of half hrs If late by 35 min to 45 min -- pay of 45 min If late by 46 min to 60 min – pay of 1 hrs If late by 2 hrs to 3 hrs ---- pay of half days Enlightenment :- For the purpose of this agreement, “family” means the spouse, the dependent childrenand development parents, if any, of the whole time Director. No time fee shall be payable to him for attending the meeting of the Board of theDirector or committee thereof. The other terms and condition of the agreement are such as are customarily contained inagreement of similar nature. The compensation package :- 46
  47. 47. Basic + Dearness allowance + other financial pays like cash canteen subsidies, „washingallowance , shift allowance , contribution of provident fund gratuity, medical charges , personalpays, inconvenience, chemical, and hazardous allowance, Etc. Shift and working Hours :-Timing at AIL are as follows1) General shift 8.00 am to 5.00 pm on all working days2) Lunch time is from 12.00 to 1.00 pm & 1.00 pm to 2.003) There are total 3 shifts in the company i.e. morning, evening and night.Wage and salary structureThis department also manages wages and salary system. The employee‟s satisfaction is thepriority of the company, which is reflected by the health wage and salary structure design overhere. The company follows the minimum wage rate policy, fixed the Govt. Salary determination :-As per the minimum wage rate policy fixed by the government. Reduction on salary:-The time office keeps the whole record of staff employees reporting to and from duty. Ifemployees come late on duty, company cut the salary Compensation salary:-Basic + Dearness allowance + other financial pays like cash canteen subsidies, „washingallowance , shift allowance , contribution of provident fund gratuity, medical charges , personalpays, inconvenience, chemical, and hazardous allowance, Etc. Salary payment:-Salary is usually paid in the first week of every month. Salary officer prepare covers with thename and personal code no., of employees and the pay slip along with cash or cheque as pergrade. Mode of payments in cash or Bank TransferStaff -- cash option or bank transferOfficer – usually bank transfer Industrial Act. Applicable by human resource in AIL.1) Factory‟s Act, 19482) Industrial dispute act, 19473) Minimum wages act, 1948 47
  48. 48. 4) Employees provident funds and miscellaneous act, 19425) Payment of Bonus act,19656) Payment wages act, 19367) Payment of gratuity act, 19728) The worker men‟s compensation Act, 19239) Apprentice Act,10) The employee state insurance Act, 194811) Contract labor Act12) Payment of Gujarat Labor welfare fundPromotion and Transfer Promotion:-AIL gives an up advancements to its employees with better pay, position and workresponsibility. Promotion policy :-AIL has adopted seniority as well as merit basis promotion policy. The seniority of employee isregarded grade wise as per character residence period on the particular grade. Also the variousother merits are considered. Promotion Criteria:-Company gives promotion on the basis of seniority. Company has decided to give promotionby the way of seniority 40% and out of 60%, 20% by the way of personal interview and 40%by performance appraisal.AIL has decided to give promotion after every 2 years of period oftime. If one not get satisfaction, at that post, he back to his position during the promotionperiod. TransferA transfer is a lateral shift causing movement of an employee from one job, section,department shift, plan or position to another at some or another at some or another place withon charge of salary status and responsibility, etc Internal transfer:-AIL internal transfer or department transfers are avoided as far as possible. Period Transfer :-This type of transfer mainly carries in the marketing department. Whose regional areas andsales department are located throughout the country? 48
  49. 49. According to policy marketing personal is transfer every four years, so they can come back tothe native state. Frequent transfer are avoided in company, they care of its adverse effect.Leave Structure Weekly off:-If an employee is working in factory, i.e. different branch, the weekly off is on Sunday. If anemployee is working at office (Mumbai), the weekly off is on Saturday and Sunday. Paid holiday:-The employees are entitled to take right holidays in a year, which is declared by managementin the month of Jan. Sick leave9 days of sick leave are available per annum and credited on 1st Jan every year during the firstyear of employment, however this leave benefit will be available on pro-rate basisaccumulated. Sick leave can be incase at the time of retirement and death only which can be upto a maximum 72 days. Casual leave:-9 days casual leave is available per annum and directed however this leave benefit will beavailable on pro-rate basis, since casual leave benefit merit. The applicability of the scheme isthat the scheme will be applicable to all employees of the company and their studying in STD5th to 12th. The approximate budget amount already set and given to the child will be Rs.32000/-P.A. (eight students every year x4000/- fees of each) Voluntary Retirement Scheme:-The Human Resource Department has also implemented a special type of policy for theemployees named as Voluntary Retirement scheme. Under this scheme, if an employee isabove 40 years of age and retire voluntary. He will be entitled to get the minimum 4 monthsalary excluding the benefit for the remaining years. And not many but only two employeeshave gone for this scheme. Milk scheme:-At present AIL is giving milk coupons to all of its employees expect some service departmentthat are excluded from the scheme. Along with the milk coupons, AIL is giving tea allowancesto all of its @ Rs. 4/- per attend. Funeral scheme:- 49
  50. 50. The scheme is such that Rs. 2500/- to be given to all the employees on behalf of the society andAIL on expiry of any of the dependent family member. Company will compensate the amountto society. This is a small way to show the gratitude and company‟s concern towards theemployee and their family. Welfare scheme for employeesThe AIL also provides some welfare schemes for their employees so that they can help theiremployees in some or other ways. Med claim of employees Personal accident Employees D-link insurance scheme. Group gratuity scheme School admission Housing admission Cycle/ car loans L.I.C through salary 50
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  52. 52. INTRODUCTION OF HUMAN RESOURCE CLIMATE.The history and origin of Human Resource Development is not very old. The term came intouse only in the early seventies. The term HRD was first applied in 1968 in the GeorgeWashington University. In 1969, it was used in Miami at the American Society or Training andDevelopment Conference. But by the middle of 1970s it was gaining more acceptances, butwas being used by many as merely as more attractive term than Training and Development. Inthe opinion of some management thinkers Japan is the first country to stress and use HRDpractices. “Better people”, not merely better technology the surest way to a “better society” isthe most popular belief in Japan.According to Prof.Udai Pareekh, as far as India is concerned, the term HRD was introduced forthe first time in the State Bank of India in 1972. It is philosophical value concept developed byDr. Udai Pareekh and Dr. T.V.Rao at the Indian Institute of Management,Ahemdabad. By thelate seventies, this professional outlook on HRD spread to a few public and introduced theconcept with an objective and facilitating growth of employees, especially people introduced atlower levels. In BHEL, this concept was introduced in 1980. Similarly in SAIL, Maruti UdyogLtd., Indian Airlines and TISCO.Even while introducing HRD, many organizations were under the impression that it wasnothing but Training and Development concept. Certain companies start renaming theirTraining and Development Departments and some have created new departments. Later someother personnel management functions like performance Appraisal, career Planning andDevelopment, Feedback and counseling, organizational Development and Data Storage systemwere included as sub-systems of HRD.CONCEPT HRD.HRD is concerned with the development of Human Resource in an organization. Developmentmeans improving the existing capacities to the Human Resource in the organization andhelping them to acquire new capabilities required for the achievement of the corporate as wellas individual goals.HRD is mainly concerned with developing the skill, knowledge and competencies of peopleand it is people-oriented concept. When we call it as a people-oriented concept the question ofpeople being developed in the larger or national context origin the smaller organizational 52
  53. 53. context? Is it different at the macro and micro level? HRD can be applied both for the nationallevel and organizational level. But many personal mangers and organization view HRD assynonymous to training and development. Many organizations in the country renamed theirtraining departments as HRD departments. Some educational, institutions started awardingdegrees and diplomas in HRD even though the concept is not yet crystal-clear. HRD fromorganizational point view is a process in which the employees of an organization arehelped/motivated to acquire and develop technical, managerial and behavioral knowledge,skills and abilities, and mould the values, beliefs, attitude necessary to perform present andfuture roles by realizing highest human potential with a view to contribute positively to theorganizational, group, individual and social goals. A comparative analysis of these definitionsshows that third definition seems to be comprehensive and elaborate as it deals with thedevelopment aspects of all the components of human resources. Further, it deals with all typesof skills, the present and future organizational needs and aspect of contribution to not onlyorganizational also other goals. The analysis of the third definition further shows that there arethree aspects.viz.1. Employees of an organization are helped/motivated;2. Acquire, develop and mould various aspects of human resources; and3. Contribute to the organizational, group, individual and social goals.The first aspect deals with helping and motivating factors for HRD. These factors may becalled Enabling factors which include: organization structure, organizational climate, HRDclimate, HRD knowledge and skills to managers, human resource planning, recruitment andselection. The second aspect deals with the techniques or methods which are the means toacquire develop and mould the various human resources. These techniques include:Performance, appraisal, potential appraisal, career planning and development, Training,Management development, Organizational development, Social cultural programs, andWorkers participation in management and quality circles. The third category includes theoutcomes contribution of the HRD process to the goals of the organization, group, individualsand the society.HRD believes that individual in an organization have unlimited potential for growth anddevelopment and that their potential can be developed and multiplied through appropriate andsystematic efforts. Given the opportunities and by providing the right type of climate in theorganization, individuals can be helped to give full expression of their potential, contributing tothe achievement of goals of the organization and thereby ensuring optimization of human 53
  54. 54. resources. Investment in human beings is another underlying concept of the human resourcesystem. The organization accepts that development of human resources involves investment oftime and concern for growth. Everyone in the organization will have to take self-responsibilityfor growth and optimization of performance.HRD is the process of increasing knowledge will and capacities of all the people in a givensociety. In the national context, HRD is a process by which the people in various groups arehelped to acquire new competence continuously so as to make them more and more self-reliantand simultaneously develop a sense of pride in their country.HRD is the process of increasing knowledge, skills, capabilities and positive work attitude andvalues of all people working at all levels in a business undertaking. It is very narrow concept ofHRD which by itself is not an end but a means to achieve certain objectives and makingadvancement of individual and organizational goals. HRD is a development-oriented planningeffort in the personnel area which is basically concerned with the development of humanresource in the organization for improving the existing capabilities and acquiring newcapabilities for achievement of the corporate and individual goals.DEFINITIONS OF HRDNadler (1970) defined as a series of organized activities, conducted within a specified periodof time, and designed to produce behavioral change. Some of the common activities heidentified within HRD are training, education and development. He identified training as thoseactivities intended to improve performance on the job, education as those activities intended todevelop competencies not specific to any one job, and development is preparation to help theemployee move with the organization as it develops.In a revised definition Nadler (1984) defined it as organized learning experiences in a definitetime period to increase the possibility of job performance and growth.A recent review of the definition of HRD by McLean and Mc Lean (2001) provides a lot ofinsights into field. The following are some of the highlights of this article: While there have been many efforts to define HRD, no consensus seem to have emerged The US definition of HRD seems to have influenced the definitions many other countries. 54
  55. 55. It appears that definitions of HRD may vary from one country to another, and the national differences are a crucial factor in determining the way HRD professionals work There appears to be difference in the perception and practice of HRD in local companies as compared to Multinational companies. In several countries HRD is not distinguished from HR but is seen systematically as a part of HR. Professional organizations and academic seem to contribute to the definition of HRDThe following is a sample of definition cited in McLean and McLean (2001):CHINA: “A planned organized education and learning process provided by organizations toimprove employees‟ knowledge and skills as well as change their job attitudes and behaviors.The process helps unleash the employees‟ expertise for the purpose of enhancing the individualperformance and achieving effective organizational functioning.” (The china Training centerfor senior civil servants). McLean observes that in China there is no difference between HR,HRD and personnel.FRANCE : HRD covers all practices that contribute to enhance the contribution of people tothe organizational objectives: competence development, satisfaction to the human requirementsof organization development training, internal career paths etc. The term „development social‟is often used synonymous with HRD.GERMANY: There is no flied defined as HRD. Personnel specialist in Management schoolsdoes some research.JAPAN: The concept of HRD can be defined by three terms: Noryukyu kathatu (developmentof individual abilities); Jinzai keisei (formulation of a mastery level of human resourcesthrough the work system and training), and Jinzai ikusei (fostering of development of humanresources through management of human resource process. Individual development, careerdevelopment and organization development are the three major components of HRD in Japan.KOREA: Most Korean staff treats it as equivalent to Training and Development. OD, CD andT&D are included sometimes.UNITED KINGDOM: HRD is relatively a new concept which has yet to become fullyestablished and accepted, whether within professional practice or as a focus of academicinquiry. Key element include: Activities and processes which are intended to have impact onorganizational and processes which are intended to have impact on organizational andindividual learning; planned interventions in individual and organizational learning; 55
  56. 56. interventions that are intended to change organizational behavior; strategic, long term, culturaland organizational changes.SINGAPORE: In Singapore public agencies describe HRD as the activities related toknowledge and skills development through organizational and community developmentthrough education, training and re-training in a lifelong learning process for improvingproductivity at the personal, organizational and community levels. Development of Men Higher productivity Good Return on investment As the Soul of Personnel Development Its strong Superior Subordinate Relationship To Cope with Changes As a Pre-Condition of Economic Growth.All business and industrial organizations are dynamics. In fact, liberalization, privatization andglobalization made the business, products/services. Organizational strength and like. Thechanges invariably demand for development of human resources. Changes in economic policies: Almost all the government across the global have changed their economic policies from communistic/socialistic pattern no capitalization pattern. Liberalization, privatization and globalization posed threat to the weak firms created opportunities large and small firms even India. Changing job requirements: Organizational dynamism brings changes and job design. The change in job design brings changes in job description and job section. These changes demand for the HRD. Organizational viability and transformation process: Organizational viabilities are continuously influenced by the environment threats. If the organization does not accept itself to the changing environment factor, it will lose its market share. If the organization desires to adopt these changes first it has developed the human resources. Technological Advances: Organizations in order to survive and develop should adopt the latest technology will not be complete until developed employees operate them. Employee development is possible through human resources development. These are the days of information technology and high-level production and survive technology. Therefore, HRD is essential in new millennium. 56
  57. 57.  Organization Complexity: With the emergence of increased mechanization and automation, manufacturing of multiple products rendering of survivals, organization become complex. Management organizational complexity is possible through HRD. Human relation: Most of the organization intends to adopt human relation approach. This in turns needs HRD.CLIMATEPerception about organization goals and about decisions that managers should take to achievethese goals come not only from formal control systems but also through informal organizations.Both the formal and informal structure combine to create what is called organizational climate.The term climate is used to designate the quality of the internal environment which conditionsin turn the quality of cooperation, the development of the individual, the extent of member‟sdedication or commitment to organizational purpose, and efficiency with which that purposebecomes translated into results. Climate is the atmosphere in which individuals help, judge, andreward, constrain and find out about each others. It influences moral and the attitudes of theindividual towards his work and his environment.Hellriegel and Slocum (1974) define organization as a “ set off attributes which can beperceived about a particular organization and/or its subsystems, and that may be induced in theway that organization and/or its sub-system deal with their members and environment” thisdefinition implied that in the measurement of organizational climate. Perceptual responses sought are primarily descriptive rather than evaluative. The level of inclusive of the items, scales and constructs and macro rather than micro. The units of analysis tend to be attributes of the organization or specific sub system rather than individual and The perceptions have potential behavioral consequences.Schneider (1975) has prepared a working definition of climate: “Climate perceptions are psychologically meaningful molar descriptions that people canagree characterized a system‟s practices and procedures. By its practices and procedures asystem may create many climates. People perceived climates because the molar perceptionsfunction as frames of reference for the attainment of some congruity between behavior and the 57
  58. 58. system‟s practices and procedures however, if the climate is one which reward and supportindividual differences, people in the same system will not behave similarly further, becausesatisfaction is a personal evaluation of a system‟s practices and procedures, people in thesystems tend to agree less on their satisfaction than on their description of the system‟sclimate”. By its very nature, „climate‟ cannot be described correctly. Some alternativecharacteristics are as follows: Focus on results versus focus on following work Individual accomplishment versus being a member of a team. Initiative and risk-taking versus not rocking the boat. Individual gains versus enhancement of organization objectives Tough mindedness versus dealing with people versus avoidance of unpleasant actions. The relative importance of participating management versus authoritarian.HRD CLIMATEDEFINITION:-Harbison and Myers (1964), “the process of increasing the knowledge, the skills and thecapacities of all the people in a society. In economic terms, it could be described as theaccumulation of human capital and its effective investment in the development of an economy.In political terms, HRD prepares people for adult participation in the political process,particularly as citizens in a democracy. From the social and cultural points of view, thedevelopment of human resources help people lead fuller and richer lives, less bound totradition. In short, the processes of HRD unlock the door to modernization.Nadler and Nadler (1970), “defined HRD as,” a series of organized activities conductedwithin a specified time and designed to produce behavioral change.”Armstrong and Baron (2002) Human Resource Development (HRD) is concerned with theprovision of learning and development opportunities that support the achievement of businessstrategies and improvement of organizational, team and individual performance.Climate, this is an overall feeling that is conveyed by the physical layout, the way employeesinteract and the way members of the organization conduct themselves with outside. (it isprovided by an organization). 58
  59. 59. Rao and Abrsham,(1986) HRD climate is an integral part of organizational climate. It can bedefined as perceptions the employee can have on the developmental environment of anorganization. The development climate will have the following characteristics A tendency at all level starting from top management to the lowest level to treat the peopleas the most important resource. A perception that developing the competencies in the employees is the j0ob of every manager/supervisor Faith in the capabilities of employees to change and acquire new competencies at any stage of life. A tendency to be open in communications and discussions rather than being secretive (fairly free expression of feelings.) Encouraging risk-taking and experimentation. Making efforts to help employees recognize their strengths and weakness through feedback. A general climate of trust. A tendency on the part of employees to be generally helpful to each other and collaborate with each other. Team spirit Tendency to discourage stereotypes and favoritism. Supportive personal policies. Supportive HRD practices including performance appraisal, training, reward, management, potential development, job-rotations, carrier planning, etc.Organization climate contributes to the organization overall health and self renewingcapabilities which in turn, increase the enabling capabilities of individual, dyads, team, and theentire organization.DEVELOPMENT OF HRD CLIMATEAn HRD climate or culture is essential for developing human resources. The HRD climate canbe characterized as consisting of the following: Openness or freedom to express one‟s ideas and opinions; Collaboration attitudes or team spirit; 59
  60. 60.  Trust;  Authenticity or correlation between words and action;  Proaction or encouraging some degree of initiative and risk-taking by employees;  Autonomy or certain degree of freedom of action for each individual; and  An interest in confronting issues and solving them rather than hiding them. Such climate can be developed through various HRD instruments mentioned earlier. Chief executive should facilitate the development of an HRD climate and effectiveness of the HRD instrument will help greatly the implementation of HRD systems. Short questionnaire like the XLRI HRD Climate survey are available. It may be worthwhile conducing such survey periodically (say once in a year or two) and examine changes occurring in the HRD climate. Feedback from such surveys could be used to plan out HRD activities for the subsequent years. IMPORTANT OF HRD CLIMATE The importance of HRD climate in an organization is as under-:1.Environment factors of HR are prime influencing elements of change in HR strategy.2.It gives professional time to anticipate opportunities in HR area and time to plan optional responses to these opportunities.3.It helps HR professionals to develop an early warning system to prevent threats emerging out from HR scenario, or to develop strategies, which can turn a threat.4.It forms a basis of aligning the organization strengths to the changes in the environment.5.It enables the entry of the latest national/international HR developments. SCOPE OF HRD CLIMATE Motivator role of Manager & Supervisor: - To prepare Human resource Development Climate, Manager and supervisor‟s responsibilities are more or we can say that they are the key players. Manager and Supervisors have to help the employees to develop the competencies in the 60
  61. 61. employees, to help the employees at lower level they need to updated properly and they need toshare their expertise and experience with employees.Faith upon employees: - in the process of developing HRD Climate employer should havefaith on its employee‟s capabilities. Means whatever amount is invested that should be basedon development of employees. Top management should trust the employees that after makinghuge effort to develop employees, employees will work for the well being of organization andfor human being also.Free expression of feelings:- Whatever Top management feels about employees they have toexpress to employees and whatever employees think about top management it must be expressin other words we can say that there should not be anything hidden while communicationprocess. Clear communication process will help to establish the HRD climate.Feedback: - Feedback should be taken regularly to know the drawbacks in system. This willhelp to gain confidence in employees mind. Employee will trust on management and he canexpress opinion freely which is very good for HRD climate. Feedback will help to remove theweakness.Helpful nature of employees: - Whenever we talk about 100% effort then we have to talkabout employee‟s effort too. Nature of employees should be helping for management and forits colleagues. They should be always read to help to customers too.Supportive personnel management: - Personnel policies of organization should motivateemployees to contribute more from their part. Top management‟s philosophy should be cleartowards Human Resource and its well being to encourage the employees.Encouraging and risk taking experimentation: - Employees should be motivated by givingthem authority to take decision. This concept is risky but gradually it will bring expertise inemployees to handle similar situation in future. It will help to develop confidence in employeesmind. Organization can utilize and develop employees more by assigning risky task.Discouraging stereotypes and favoritism: - Management need to avoid those practices whichlead to favoritism. Management and Managers need to give equal importance. Those peoplewho are performing good they need to appreciate and those who are not performing well theyneed to be guided. Any kind of partial behavior should be avoided. 61
  62. 62. Team spirit: - There must be feeling of belongingness among the employees, and alsowillingness to work as a team.ELEMENTS OF HRD CLIMATEThe elements of HRD climate can be grounded into three broad categories- general climate,OCTAPAC culture and HRD mechanisms.The general climate items deal with the importance given to human resources development ingeneral by the top management and line managers. The OCTAPAC items deal with extent towhich openness, Confrontation, Trust, Autonomy, Proactively, Authenticity and Collaborationare valued, and promoted in the organization. The items dealing with HRD mechanismmeasure the extent to which HRD mechanisms are implemented seriously. These are threegroups were taken with the following assumptions: A general supportive climate is important for HRD if it has to be implemented effectively.Such supportive climate consists of not only top management, line management‟s commitmentbut good personnel policies and positive attitudes towards development. Successful implementation of HRD involves an integrate look at HRD and efforts to use a many HRD mechanisms as possible. These mechanisms as possible. These mechanisms include: performance appraisal, potential appraisal, career planning, performance rewards, feedback and counseling, training, employee welfare for quality work life, job satisfaction, etc. OCTAPAS culture is essential for facilitating HRD. Openness is there when employees feel free to discuss their ideas, activities and feelings with each other. Confrontation is bringing out problems and issues into the open with a view to solving them rather than them for fear of hurting or getting hurt. Trust is taking people at their face value and believing what they say. Autonomy is giving freedom to let people work independently with responsibility. Productivity is encouraging employees to take initiative and risk. Authenticity is the tendency on the part of people to do what they say. Collaboration is to accept interdependencies, to helpful to each other and work as teams.The conventional connotation with which the team „climate‟ has been used in literature is„organization Climate‟. The concept of climate with specific reference to HRD context, i.e.HRD climate, has been recently introduced by Rao and Abraham (1986). Perhaps it could bedue to this reason that there is hardly any research work available in published literature. 62
  63. 63. FACTORS AFFECTING HRD CLIMATEThe following factors may be considered as contributing to HRD Climate:1.Top management style &philosophy:-A developmental style, a belief in the capability of people, a participative approach, openness and receptivity to suggestions from the subordinates are some of the dimensions that contribute to the creation of a positive HRD climate.2.Personnel Policies:-Personnel policies that show high concern for employees, that emphasis equity and objectivity in appraisals, policies that emphasize sufficient resource allocation for welfare and developmental activities, policies that emphasize a collaborative attitude and trust among the people go a long way in creating the HRD climate.3.HRD Instruments and Systems:-A number of HRD instruments have been found to generate a good HRD climate. Particularlyopen system of appraisal with emphasis of counseling, career development systems, informaltraining mechanisms; potential development systems, etc. contribute to HRD climate.4.Self-renewal mechanisms:-Organizations that have built in self-renewal mechanisms are likely to generate a positive HRDclimate.5. Attitude of a personal and HRD Staff:-A helpful and supportive attitude on the part of HRD and personnel people plays a very vitalrole in generating the HRD climate.COMPONENTS OF HRD CLIMATEThe organizational climate consists of:-1. Organizational Structure:-An organization‟s structure is actually a „snapshot‟ of a work process, frozen in time so that itcan be viewed. The structure enables the people‟s energy to be focused towards processachievement and goal achievement. Employee must have a clear definition of not only thework structure but also the role used to organize the work. If the structure and the role is not 63
  64. 64. clear, people will not know what the work process is, who responsible for what, whom to gofor help and decision, and who can assist in solving problems that may arise.2. Organizational Culture:-Organizational culture is the pattern of beliefs knowledge, attitudes, and custom that existswithin an organization. Organizational culture may result in part from senior managementbeliefs. Or from the beliefs of employees. Organizational culture can be supportive orunsupportive, positive or negative. It can be affect the ability or willingness of employees toadapt or perform well within the organization.The most effective work culture is one that supports the organizations HR strategies byaligning behaviors, processes and methods with the desired results. It not just achieving resultsbut the methods through which they are achieved that are critical to long-term success. Beforeany HR strategy is designed there must be a clear understanding of the organization, its currentvalues, its structure, its people as well as its goals and vision forth future.3. HR Processors:-The HR system of an organization should be comprehensive enough to take care of employeesfrom the time they join till the time they leave HR. Their demands must not be ignored, but afeelings of belongingness be created. Process should be very clear and impartial, so thatemployee‟s faith in organization. From the recruitment to retirement whole process should beaccording to employee‟s expectation and ability of employer.MEASURING HRD CLIMATE:1.Economic condition:- An organization‟s economic condition influences its culture in several ways. The more prosperous an organization is the more it can afford to spend on research and the more it can afford to risk and be adventurous.2.Leadership Style:- An organization leadership style plays a profound role in determining several aspects of its culture. An authoritarian style may make the organization‟s culture characterized by high 64
  65. 65. position structure, low individual autonomy, low reward orientation, low warmth and support and so on, or it may be opposite, like goal directed leadership.3.Managerial assumption about human nature:- Every act on the part of the management that involves human being is predicated upon assumptions, generalizations and hypotheses relating to human behavior. There are two theories of behavior (Theory X and Theory Y).4.Managerial values and ethos:- The feeling of mangers about norms and values what is good and what is poor as management practice. There are few dimensions on which it can be checked. They are self- awareness, risk taking, participation, bureaucracy, equity, employee‟s security and growth.5. Organization size:- Small organizations are few levels of management; these are generally more amendable to democratic and participative functioning than big organizations. More open communication system in small organizations. Hence these organizations have a different type of climate than what are in big organizations.HRD PROCESS AND HRD CLIMATE VARIABLESHuman Resource Development mechanism or sub-system or instrument leads to developmentof desired human resource development climate or process. Human Resource Developmentcultures are an essential part of the organization climate. HRD culture in the organization.In the words of T.V.Rao, “Human Resource Development climate is the perception of theemployee about the human resource development culture in the organization,” HumanResource Development experts use the term “OCTAPACE” to express the important featuresof human resource, development climate. C T A P A C E O = = = = = = = = Confrontatio Trust Au Pro- Authentici Collaboratio Experimentati Openness n to actio ty n. on. no n m y 65
  66. 66. Experimentation Human resource development climate in an Organization is reflected by itsrole, clarity, openness, trust, team work, proactive, orientation, planning of development ofevery employee etc. HRD departments are a subsystem in instrument to initiate HRD cultureand achieve objectives of HRD.Human resource development climate and processes are dependent on personnel policies, topmanagement styles, investments on HRD, top management, commitment, line managers,interest, previous culture etc. to sum up the relationship between human resource developmentsMechanism and HRD processes and climate can be explained as under:a) HRD mechanism is most useful instruments/interventions to develop a healthy HRD climate.b) HRD instruments are used to develop desired HRD processes. For instance performance and potential appraisal help to Arsey and determine the competence required for job performance. Review, discussion feedback, counseling session help in building trust and better senior subordinate relations. Role analysis exercises result in role clarity in the organization. Training and potential development exercise has proactive orientation. Job enrichment is a deliverable of upgrading of risk and responsibility in work group. OD exercise help to manage change and problems in the organization. It promotes openness, effective communication; inter departmental collaboration in the organization. It aims at providing the climate for growth and development.c) HRD climate is dependent on human resource development mechanism as well as personnel policies, top management styles.d) HRD mechanism and personnel policies should be periodically reviewed to create develop desired human resource development climate. 66
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  68. 68. RESEARCH METHOLODYTITLE“A study on Human Resource Climate”of 66 top and middle level employees at AartiIndustries Ltd, Vapi.SIGNIFICANCE OF STUDYA study on HRD climate is extremely important for the ultimate achievement of the businessgoals. In the Indian context, type of organization influences the culture prevent in theorganization. It‟s an outcome of the favorable on unfavorable with which the HR practicesfollowed by the organization are perceived. This in turn affects employee‟s behavior and workattitudes like organizational commitment.HR means employees in organization, who work to increase the profit for organization.Development, it is acquisition of capabilities that are needed to do the present job, or the futureexpected job. The process of enhancing an employee‟s present and future effectiveness iscalled development.After analyzing Human resource and Development we can simply stated that, HRD is theprocess of helping people to acquire competencies.Climate, this is an overall feeling that is conveyed by the physical layout, the way employeesinteract and the way members of the organization conduct themselves with outsiders.In the era of liberalization, privatization and globalization climate of an organization has agreat impact on the functioning of organization and its development.Due to staff competition from private and public sectors various problems have to be faced.Hence, in such time a climate and its various parameters like innovations, developmentalclimate, positive attitude, top management‟s commitment to HRD etc plays a major role bothfor employees and for the organization.OBJECTIVES OF THE STUDYPRIMARY OBJECTIVE:- To Study the perception of employees regarding HRD climate in Aarti Industries Ltd. 68
  69. 69. SECONDARY OBJECTIVE:- To identify nature of work of employees in Aarti Industries Ltd. To study existing working environment of employees in Aarti Industries Ltd. To identify existing welfare measure and PMS of employees in Aarti Industries Ltd. To study various training programs and career planning & development in Aarti Industries Ltd. To identify transparency among employees.OPERATIONAL DEFINITION:-HRDHuman resource development is a frame work for the expansion human capital within anorganization. Human Resource Development is a combination of Training and Education thatensures that continual improvement and growth of both individual and the organization. HRDis the structure that allows for individual development, potentially satisfying the organization‟sgoals. The development of the individual will benefit both the individual and the organization.CLIMATEThe term climate is used to designate the quality of the internal environment which conditionsin turn the quality of cooperation, the development of the individual, the extent of member‟sdedication or commitment to organizational purpose, and efficiency with which that purposebecomes translated into results. Climate is the atmosphere in which individuals help, judge, andreward, constrain and find out about each others. It influences moral and the attitudes of theindividual towards his work and his environment.HRD CLIMATEHRD Climate is an integral part of organization climate. It is the perception the employees canhave on the developmental environment of an organization. HRD climate is the humanenvironment in which the employees work in an organization. It is an outcome of thefavorableness or unfavorableness with which the HRD practices followed by the organizationare perceived. This in turn affects employee behavior and work attitude like organizationalcommitment. 69
  70. 70. RESEARCH DESIGNThe research design for this study is Descriptive and Explorative nature.DESCRIPTIVE RESEARCHThe main goal of this type of research is to describe the data and characteristics about what isbeing studied. The idea behind this type of research is to study frequencies, averages, to portrayaccurately the characteristics of particular individual, situation or group, and other statisticalcalculations. It is quantitative and uses surveys and panels and also the use of probabilitysampling. The study will describe about the various factors which affects the organization toretain talented workforce in Aarti Industries Ltd, Vapi.EXPLORATIVE RESEARCHExploratory research is a type of research conducted for a problem that has not been clearlydefined. It helps determine the best research design, data collection method and selection ofsubjects. It should draw definitive conclusions only with extreme caution. Exploratory researchoften relies on secondary research such as reviewing available literature and/or data, orqualitative approaches such as informal discussions with consumers, employees, managementor competitors, and more formal approaches through in-depth interviews, focus groups,projective methods, case studies.UNIVERSE:The universe for the study includes all top and middle level employees of Aarti Industries Ltd.SAMPLE AND SAMPLING:SAMPLE: Sample size consist of 66 top and middle level employees working at AartiIndustries Ltd.SAMPLING METHOD: Simple random sampling method was used to select the respondentsfrom different departments of the industry.VARIABLES:Dependent variables: 70
  71. 71. Dependent variable includes nature of work, working environment, welfare measure,performance management system, training, career planning & development and transparencyorganization.Independent variables:Independent variable includes all personal information like age, marital status, monthlyincome, educational qualification, and experience.TOOLS OF DATA COLLECTION:The tool used for data collection was structured questionnaire prepared by researcher. Itconsists of few open ended questions and close ended questions. The close ended questionswere to be accessed on a 5 point scale by encircling the numbers which the respondentsconsider most appropriate.(1-Strongly agree, 2-Agree, 3-Neutral, 4-Strongly Disagree, 5-Disagree)REFERANCE PERIOD:The data was collected in the Month of June-July 2012.LIMITATIONS OF THE STUDY1) The first and foremost limitations are regarding the source of information. The informationcontained has been obtained from the sources believed to be reliable and good in faith, butwhich may not verified independently.2) Since the sample size was limited and at the same time HRD climate being a broad topic, thesize could not suffice the needs of the study.3) The time constrain was one of the factors to be kept in mind while carrying out the study. 71
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  73. 73. REVIEW OF LITERATURELyon & Lvancevich (1974) in their study of a Hospital have found that different climatedimensions influence facts of individual job satisfaction for nurses and administrators.Jain, Singhal & Singh (1996) studied on HRD Climate in Indian Industry, in two public sectororganization i.e.BHEL and NFL and concluded that the HRD climate is mainly a function ofthe effectiveness variables including individual efficiency, organizational efficiency andproductivity and the HRD variables including management policy on HRD, organizationdevelopment, role analysis and training.Ishwar Dayal (1996) carried out a study of HRD climate in Indian Oil Corporation. It wasfound that HRD climate was positive for learning.Gani &Rainyee(1996) conducted study in HRD Climate in Large Public Sector Organizationin Kashmir and concluded that climate existing in the organization for employees developmentwas picking up and it was further observed that compared to managerial personnel, workerswere less sanguine.Krishna & Rao (1997) carried out a comprehensive empirical study in BHEL, Hyderabad andfound that HRD climate in the organization encouraged middle and seniors managers toexperiment with new methods and try out creative ideas.Venkateswaran (1997) studied on human Resource development Climate, made a study basedon the responses of 132 executives of a large PSU and concludes that early identification ofhuman resources potential development. This can be achieved only when a conducive HRDClimate prevails. The study found the existence of favorable HRD Climate in the organization.Varimax (1998) study focused on the relevance of congenial and competitive HRD Climatefor public sector commercial banks in India in the light of numerous challenges arising frommultinational and new generation private sector banks on account of liberalization andglobalization of the Indian economy. The study was confined to 5 selected public sectorcommercial banks within Indian context for analyzing the HRD climate dimensions. To assessthe HRD climate, a survey instrument of 40 variables was used. The sample size was 1427which included senior HRD managers, branch managers, clerks and other supporting staffdrawn by simple random sampling. Respondents were asked to rate these 40 variables whichare rooted on seven point Likert scale of 1-7. The data was subjected to PCA (Principal 73

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